Should I Wait to Take Social Security Until 70?
Deciding when to start receiving Social Security benefits is a crucial financial decision that can significantly impact your retirement income. One common question among retirees is whether they should wait until the age of 70 to take their benefits. This article delves into the factors to consider when making this decision.
Understanding Social Security Benefits
Social Security is a government program designed to provide income to retired workers, as well as their surviving spouse and children. The age at which you can start receiving these benefits is known as your full retirement age (FRA), which varies depending on the year you were born. For those born between 1943 and 1954, the FRA is 66. For those born in 1960 or later, the FRA is 67.
Benefits of Waiting Until Age 70
Waiting until age 70 to take your Social Security benefits offers several advantages. Firstly, your monthly benefit amount will increase by approximately 8% each year from your full retirement age until you reach 70. This means that if you delay taking your benefits, you could receive a significantly higher monthly income throughout your retirement.
Secondly, waiting until age 70 can help ensure that you and your spouse have a more substantial financial cushion. If you or your spouse pass away, the surviving spouse will receive a higher benefit if the deceased had waited until age 70 to start receiving their benefits.
Considerations for Waiting Until Age 70
While there are advantages to waiting until age 70, there are also factors to consider before making this decision. One important consideration is your health and life expectancy. If you anticipate a long and healthy retirement, waiting until age 70 may be a wise choice. However, if you have health concerns or a shorter life expectancy, starting your benefits earlier could be more beneficial.
Another factor to consider is your financial situation. If you are in need of additional income to cover your expenses, starting your benefits earlier may be necessary. Additionally, if you plan to continue working and earning income, it’s essential to understand the potential impact on your Social Security benefits.
Conclusion
Deciding whether to wait until age 70 to take your Social Security benefits is a personal choice that depends on various factors. While waiting until age 70 can provide a higher monthly income and a more substantial financial cushion, it’s crucial to consider your health, life expectancy, and financial situation. Consulting with a financial advisor can help you make an informed decision that aligns with your retirement goals.
